A smartphone is a handheld computer that can perform telephone functions. "Smartphone," by the way, is the author's word, not the law's. The law says "telephone handset."
It seems bizarre that the presence of a telephone function makes a difference, but as a practical matter it does severely limit the kinds of computers that are subject to the exemption. The Librarian of Congress said we shouldn't exempt tablets, because by every definition of tablet that was proposed, it included a wide variety of devices and some of those might not deserve exemptions. Requiring the computer to have a telephone ap, on the other hand, excludes as a practical matter all of those debatable classes of device.
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